In the United States, credit agencies practice interest rates of up to 250%!

These loans usually involve small amounts, but with a third of Americans having less than $400 in the bank, resorting to these credits is often necessary. However, this phenomenon is only observed in half of the states.

In the United States, interest rates have caps in most cases, such as for mortgages or car loans. However, there is no federal limit on interest rates for what are called “payday loans” (or equivalent credits), which are small amounts borrowed almost immediately and normally quickly repaid.

It is up to each state to set its cap. Many set their cap at 36%, but half of the 50 American states do not impose one. A company like Integra Credit, for example, a firm from Chicago, offers on its website loans between $500 and $3,000, with an interest rate ranging between 159 and 249%. The customer must repay them over a period of 10 to 20 months.

Those who borrow at such rates often have no choice. A third of Americans have less than $400 available in the bank to cover an emergency. If there is a more expensive repair than expected on a car in the garage, these high-interest loans can help because you have access to the money within 24 hours.

Furthermore, in the United States, there is a “credit score” that rates individuals on their ability to repay a loan on time. You need to have debts, even if you don’t need them, or monthly payments to make for this score to increase – it can be surprising for someone settling in the United States. This “credit score” has an impact on your future loans. If it is low, you will have a hard time finding a bank or credit institution that trusts you. This is where “payday loans” come in.

It is obviously a risk for a vicious circle. Americans, depending on the state they live in, can quickly find themselves in a debt cycle, where one loan is used to repay another. Advocacy groups have been campaigning for years to reduce these rates. Some organizations have been sued.

The difference may come from a bill, presented in February 2026 by a Democratic senator. The Predatory Lending Elimination Act – the name of this law – would set a national cap at 36%. Military personnel and their families already benefit from this maximum rate. The idea would be to extend it to all consumers.